Media Mentions
2008
Steven S. Scholes was quoted in the June 11 issue of Fortune Magazine in an article regarding the Commonwealth of Massachusetts' claim that Phil Goldstein, a hedge fund manager, violated rules prohibiting the marketing of hedge funds to average investors. In response, Goldstein and his firm filed suit in March 2007 against the secretary of the Commonwealth, claiming that the secretary had violated Goldstein's right to free speech. Mr. Scholes noted that if Goldstein wins his case, changes will likely be made in how hedge funds raise capital. "You would see more advertising in every imaginable form, especially by smaller, less established, and possibly riskier firms that need more capital. It would benefit them much more than the big houses," he said.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was quoted in the April issue of CFO Magazine in an article regarding the unpredictably and complexity of going to trial in class-action shareholder lawsuits. As a partner in McDermott Will & Emery's Trial Department, Mr. Scholes noted that despite uncertainty, the rising costs of settling have made going to court more attractive. "The tremendous increase in the dollar value of settlements has greatly altered the economics of securities class cases. You can see how the balance would tip toward going to trial, if you have a good defense," he said.
Steven S. Scholes, Class Action, Trial
2007
Steven S. Scholes was quoted in the November/December issue of Corporate Board Member regarding updates on directors' and officers' insurance. Mr. Scholes discussed how although there is no rule to how much D&O coverage a company should carry, many organizations are underinsured. Mr. Scholes stated that your company should ask, "how it decided what limits to purchase and what the typical settlement values are for comparable-size companies in the same industry."
Steven S. Scholes, Insurance, Trial
Steven S. Scholes completed a Q&A on October 8 published by Securities Law360 regarding his work in white-collar and securities law.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was mentioned in the September issue of Leading Lawyers Network Magazine in recognition of being named a top business lawyer in Illinois. This recognition is based on peer nominations.
Steven S. Scholes was quoted in an August 1 article published by CFO Magazine regarding the effect of the Sarbanes-Oxley Act on the relationship between the Securities and Exchange Commission (SEC) and other key players. Mr. Scholes notes that the relationship with the Financial Accounting Standards Board (FASB) is particularly complicated due to a history of being at odds with each other. "It is eminently clear that the SEC is insisting on a seat at the table during the process through which FASB members are nominated. What is not as clear is how the SEC will use that seat," Mr. Scholes said.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was quoted in a February 22 article published by CFO.com regarding an NYSE trading specialist who was acquitted of fraud charges in the Southern District of New York. Mr. Scholes commented on SEC Rule 10b-5, particularly its use by prosecutors to charge individuals who deceive or mislead financial statement readers. He explained that 10b-5 is "the heart and soul" of the federal antifraud provision.
Steven S. Scholes, Corporate Responsibility, Trial
2006
Steven S. Scholes was quoted in the August edition of the Chicago Lawyer in an article regarding the decline of securities class action suits. Mr. Scholes commented on how the decline may be based on the fact that most of the major cases have settled and as a result of the Sarbanes-Oxley Act as well as a series of high profile scandals, companies have been deterred from engaging in fraudulent behavior. "Some of the larger, more well-publicized cases we've been reading about may be working their way through the system and returning us to a more normal state of affairs," Mr. Scholes said.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was quoted in a May 2 article published by Securities Law360 regarding McDermott's close link between the firm and federal regulators. Mr. Scholes, a former attorney to the SEC's Division of Enforcement, discusses how these relationships often help their clients avoid a trial altogether. "We value very highly the credibility that we have with government lawyers. Much of our practice is against the government or regulatory agencies and we greatly guard the reputation we've developed with them over the years," Mr. Scholes said.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was mentioned in the March edition of The American Lawyer in an article regarding former stock trader Daniel Calugar's agreement to pay the Securities and Exchange Commission $153 million in a mutual funds settlement.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was mentioned in the February edition of Chicago Magazine in recognition of being named among the top five percent of securities litigation attorneys by Illinois Super Lawyers 2006 . This recognition is based on peer nominations and independent research.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was mentioned in a January 11 article published by The New York Times regarding former stock trader Daniel Calugar's agreement to settle the Securities and Exchange Commission's accusations that he improperly traded mutual funds after market hours.
Steven S. Scholes, SEC Defense, Trial
2005
McDermott was featured in four cases and one M&A deal in the Crain's Chicago Business's list of 2005's big litigation and deals published on September 19. Lazar Raynal (Pritzker v. Pritzker), Rick Meyer (Lorillard Tobacco Co. v. Chester Wilcox & Saxbe LLP), Steven Scholes (SEC v. Calugar), Mike Pope and Christopher Murphy (Oshana v. Coca-Cola Co.), all trial partners based in Chicago were mentioned in the litigation list. John Tamisiea and Michael Fayhee were mentioned in the deal list for Gardner Denver Inc.'s purchase of Thomas Industries Inc.
Michael R. Fayhee, Derek J. Meyer, Christopher M. Murphy, Michael A. Pope PC, Lazar P. Raynal, Steven S. Scholes, John P. Tamisiea, Corporate, Mergers & Acquisitions, Trial
Steve Scholes was quoted in the May issue of CFO Magazine on the increased cost for companies to settle securities lawsuits. In 2004 the number of suits settled was up 23 percent from 2003 but the total cost to settle the case more than doubled to $5.5 million. The larger settlements are mostly due to the larger losses incurred by the plaintiffs and pressure to settle quickly to focus on regulatory issues. "The claimed damages are massive," commented Mr. Scholes
Steven S. Scholes, Securities, Securities Litigation, Trial
Steve Scholes was quoted in the January issue of D&O Advisor regarding Sarbanes-Oxley and barring defendants in fraud cases from serving as directors or officers of public companies. The D&O bar from serving as an officer or director may last five, ten or 15 years, or a lifetime. It's a "career death sentence" Mr. Scholes commented. Even a five-year bar could stigmatize executives or board members for the rest of their working lives, he continued. There are currently no statistics on the number of directors and officers who resist a D&O bar. Although it is believed that such cases are rare, Mr. Scholes predicts they are likely to grow, "We're at the precipice of a change."
Steven S. Scholes, Corporate Responsibility, Trial
2002
Steven Scholes was quoted on August 8 in BestWire regarding corporate officers signing off on the veracity of their company's financials. Mr. Scholes explained the penalties, although not criminal, of this Securities & Exchange Comission requirement. "Any time an officer makes a statement to the public that is later deemed misleading, the signer is exposed to the federal securities law." He also commented that the law increases the penalties for white-collar crimes, including a $5 million fine and up to 20 years in prison.
Steven S. Scholes, Corporate Responsibility, White-Collar Criminal Defense
1998
Steven S. Scholes was quoted in an April 19 article published by The Chicago Tribune regarding Monetta Financial Services' president, Robert Bacarella, being accused of securities fraud by the SEC. Mr. Scholes commented on the unprecedented case, which is the first case that involves personal trading by fund directors. "I think [SEC officials] are chilling people [who serve as fund directors] right now. The problem is it's patently unfair," he said.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was quoted in a March 3 article published by The Wall Street Journal regarding the SEC case against Monetta Financial Services for passing along new stocks to the personal brokerage accounts of three of its funds' directors. Mr. Scholes commented on this unprecedented case, stating that "we believe the case addresses industry-wide issues that the commission should address by rule."
Steven S. Scholes, SEC Defense, Trial
1997
Steven S. Scholes was quoted in a November 14 article published by The Daily Business Review regarding Randall J. Fons' appointment as the new director of the Southeast regional office of the Securities and Exchange Commission. Mr. Scholes has had several cases against Mr. Fons. "He knows the securities laws inside and out and is appropriately aggressive...He pursues cases very hard, and yet at the same time he is willing to listen to reason and mitigation factors and is easy to get an audience with," Mr. Scholes said.
Steven S. Scholes, SEC Defense, Trial
Steven S.Scholes was quoted in an October 13 article published by Best Week regarding Delaware Insurance Commissioner Donna Lee H. Williams filing suit against National Heritage Life Insurance Co. in order to recoup policyholders' losses. Mr. Scholes stated that his client, Ms. Williams, "filed a 17-count suit against 59 defendants in the $400 million collapse of National Heritage Life."
Steven S. Scholes, SEC Defense, Trial
1995
Steven S. Scholes was mentioned in a December 1 article published by Mealey's Litigation Report regarding a federal magistrate judge's decision that a receiver be appointed to supervise the loan servicing process of National Heritage Life Insurance Co.
Steven S. Scholes, SEC Defense, Trial
Steven S. Scholes was quoted in the December edition of the Securities Regulation & Law Report regarding the involvement of charitable organizations in a Ponzi scheme resulting in failing to win the U.S. Supreme Court review. Mr. Scholes has been appointed as receiver. "The far reaching effects of the decision below are exaggerated and unfounded, however even if this court were to give credence to those claimed effects, Petitioners' desired protection from the decision below must come from the Illinois legislature, not from this Court," Mr. Scholes said.
